Answer: the approximate value of the house in 15 years is 540283
Step-by-step explanation:
If the value of the house rises 4% each year, then the growth rate is exponential. We would apply the formula for exponential growth which is expressed as
A = P(1 + r)^t
Where
A represents the value of the house after t years.
t represents the number of years.
P represents the initial value of the house.
r represents rate of growth.
From the information given,
P = $300,000
r = 4% = 4/100 = 0.04,
t = 15 years
Therefore
A = 300000(1 + 0.04)^15
A = 300000(1.04)^15
A = 540283 to the nearest whole number
